The increasing cost of living and rising interest rates may be tempting many parents and grandparents to consider gifting to their kids. While this may help the kids, it can have significant consequences for an older person’s own future – especially if a need for aged care arises.

Access to government concessions such as the age pension and residential aged care are means-tested. In aged care, the more you have in assets and income, the more you’ll pay in fees and the less you’ll get in the age pension.